New taxes on tobacco to burn big hole in consumers’ pockets

STAFF REPORT

It may be April Fools’ Day, but this is no joke.

A 62-cent increase in cigarette tax begins today.

President Barack Obama signed a bill in February to increase taxes on tobacco products in an effort to help expand a federal health-care program for children, according to philipmorrisusa.com. Philip Morris USA is the largest tobacco company in the U.S.

The increase, which will raise taxes on cigarettes from 39 cents per pack to $1.01 per pack, is expected to raise $32.8 billion for the State Children’s Health Insurance Program. The extra tax will fund health care for about 11 million children nationwide.

The tax on chewing tobacco will rise from 19.5 cents per pound to 50 cents per pound. Other products such as cigars and smokeless tobacco will also be affected.

Two Valley men agreed to disagree about whether the tax is justified.

Demayne Earvin, of Youngstown, said the same types of taxes seem to work in other countries such as Canada.

He said he’s a smoker but not necessarily against a higher tobacco tax. “I like it because it’ll make me quit,” he added.

Earvin said he has already seen a price increase over the past six weeks.

“The worst part about it is convenient stores have been acting as if it’s been in effect for awhile,” he said.

This early increase in price could be due to Philip Morris’ raising Marl-boro prices by 71 cents per pack at the beginning of March. Prices on smaller brands were raised by 81 cents per pack. Other major companies have done the same.

Representatives from the company have repeatedly said the early increase has been a direct result of the federal excise tax increase.

John Thompson, of Youngstown, said he disagrees with the tax, but not because he’s a smoker.

“I have a problem with them targeting only smokers,” he said. “How can you just choose one group of people and tax the hell out of them?”

Thompson and Earvin both said they are not heavy smokers, and the tax will cause them to spend less on tobacco.

“It’s not really a deterrent,” Thompson said. “I’m a social smoker. Sometimes I go weeks without smoking, but I will smoke less.”

efranco@vindy.com